Panama Papers leak: Confusion over Iceland PM's resignation report

Updated: Wednesday, April 6, 2016, 11:45 [IST]

Reykjavik, April 6: Iceland's Prime Minister Sigmundur Gunnlaugsson became the first major casualty of the Panama Papers leak which has brought all focus on offshore finance, reported the media across the world.

But other reports said it was not true as there might have occurred a goof-up while translating a statement issued in Icelandic language. It was said a former Iceland prime minister had called Gunnlaugsson to resign but Google erroneously translated it as "will immediately resign" instead of "must".

Iceland protest — People gather to demonstrate against Iceland's PM Sigmundur Gunnlaugsson in Reykjavik on Monday (April 4). PTI

BNO News said Gunnlaugsson did not resign but offered to step aside temporarily and his office informed the foreign media so. The Twitter, however, went on discussing the leader's resignation in length.

Charges against Gunnlaugsson

The leaks from Mossack Fonseca, a Panama-based law firm, showed Gunnlaugsson owning an offshore firm with his wife but did not declare after entering Parliament.

The leader was accused of hiding family assets hiding millions of dollars. Gunnlaugsson, however, said he sold his shares to his wife and did not indulge in any wrongdoing.

The former Iceland premier is one among dozens of high-profile figures who featurd in the 11.5 million leaked records that came in the open on Sunday.

Pressure had been building on Gunnlaughsson with thousands protesting outside the parliament building here on Monday. The Opposition also stabled a confidence motion on the issue.

On Tuesday, Gunnlaughsson asked President Plafur Ragnar Grimsson to dissolve the parliament and call early election.

The latte, however, said he first sought to consult the Independence Party, which is a ally in the ruling coaltion with Gunnlaugsson's Progressive Party since 2013.

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